Indian stock market indices continue to trade strong over the last two hours of trade on back of heavy buying activity witnessed across industry heavyweights. FMCG and realty stocks witnessed maximum buying interest while IT stocks witnessed maximum selling pressure.
Auto stocks are trading in the green led by Maruti Suzuki and Hero MotoCorp. According to a leading financial daily, TVS Motor and Sundaram Clayton Limited (SCL) are planning to invest Rs 7.7 bn n their facilities at Hosur in Tamil Nadu. SCL is one of the largest auto components manufacturing and distribution group in India. It is a leading supplier of aluminium die castings to the automotive and non-automotive sector. The proposed investments by two companies are for a brown-field expansion. Investments by TVS Motor will support its growth target of 8 - 10% for the whole year. The investment comes at a time when the company has lined up some new launches, including a 125-cc motorcycle during the July-August time frame. TVS Motor has also pumped an additional USD $5 m into its Indonesian subsidiary, PT TVS Motor Company.
Mining stocks are trading strong led by National Mineral Development Corporation (NMDC) and Sesa Goa. According to a leading financial daily, Coal India has entered into pacts with 14 power plants for the supply of coal. However some of the power companies including National Thermal Power Corporation (NTPC) have refused to sign it due to their objections on some of the clauses of the model fuel supply agreement. Most of the power producers have reservations about certain clauses, including those related to penalty, in the revised Fuel Supply Agreement (FSA) put forward by Coal India. So far other power firms with which Coal India has entered into pacts includes Reliance Power's Rosa Power project, Lanco Anpara Power and Bajaj Hindustan. Last month, the government had issued a directive to Coal India to commit a minimum of 80% of fuel supply to power producers, failing which it would attract penalty.